By Greg N. Gregoriou, Nigel Finch
Administration accounting has gone through major evolution relocating clear of inflexible budgeting courses and static output measures to accomplished techniques of price identity and measurement.The e-book presents case reviews, statement and research from overseas specialists in administration accounting around the modern concentration components.
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Extra resources for Best Practices in Management Accounting
When the plans and projected results are acceptable to senior management and the company’s owners, the resulting budget is adopted to guide the next year’s operations and serves as a basis for performance evaluation. Budgeting is expected to provide many benefits to a company. It is a high-profile activity because it affects virtually all operating areas and support functions within the organisation. Consequently, every manager in a firm is affected in some way by budgets. Given this pervasive influence, budgeting offers several important benefits.
In the case of bottom-up budgeting and other participative processes, an important question about firms that have adopted these programs is whether the goal is to improve productivity and performance or to make some attempt to appear to conform with well-publicised trends 3 4 The Rhetoric and Reality of Budget Participation towards employee empowerment initiatives. Access to such data can ‘pierce the veil’ of formal workplace protocols to examine systematically how information actually flows among managers.
First, operating managers may have felt uncomfortable with the language of accounting and may have relied on finance managers for support. Many operating managers may lack the background to handle technical accounting procedures or may be intimidated by (or uninterested in) communicating in terms of the language of finance. However, the interview data will show that APCO managers actually felt quite comfortable and capable of preparing financial budgets that relate to business goals. Further, participants rated their own influence and involvement.
Best Practices in Management Accounting by Greg N. Gregoriou, Nigel Finch